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An overview of the financial reporting in Malaysia :pen: - Coggle Diagram
An overview of the financial reporting in Malaysia :pen:
Business Review
A fair review of the company's business
A description of the principle risk and
uncertaintiies facing the company
A balance and comprehensive analysis of
development and performance of the company
Information about matters, company employers
and social community issues
Information about erson with whom the company has contractual
Introduction
The Current Financial Reporting Regime
FRF (Watchdog/Guardian)
MASB
Develop a conceptual framework for the purpose of evaluating proposed acc standards, issue new acc standards as approved standards.
MFRS ( sets accounting Standards independent of accounting profession
to review performance of MASB
responsible in any operation of MASB
A Historical Perspective
starting at late 1970 regulated by CA 1965 (Schedule 9)
In 1997, Financial Reporting Act created 2 bodies
Malaysia Accounting Standard Board (MASB)
Financial Reporting Foundation (FRF)
late 2011 - FRS become know as MFRS it implement in CA 2016
Statutory Regulation on
Financial Accounting and
Reporting
Financial Services Act 2013
Companiest Act 2016
Income Tax Act 1967
Audit Oversight Board
To assist Securities Comission in overseeing auditors of public interest entities and protect investors interests
requires all auditors of
PBE to be registered
Regulation by Bursa Malaysia
Is a private sector body
Does not have legal power to enforce compliance
Securities Commission Act 2015
Is a public sector statutory body Main functions are the encourgament and promotion of development of capital markets in MY
requires co to keep proper acc records
Accounting Standard Pronouncement in Malaysia
Future Pronouncements- IFRS compliant Financial Reporting Standards
Pronouncements before the current Financial Reporting Regime
Under the Current Financial Reporting Regime
Big GAAPs vs Small GAAPs
The same accounting standard should be accorded
for small and large entities
Exemption for small entities are sought mainly form the cost benefits consideration and the argument that some of the requirements may be
too onerous for smaller entities
School of taught argues : The small entities should not be subjected to the same excentive requirements prescribed
for large entities